Financial crisis of 2007–2010

prerequisites of the borrower what so ever. (Kirchhoff, Block, 2004) To make certain that these types of borrowers would qualify; the government introduced a bill granting the down payment to be payed by the government. (U.S. Department of Housing, 2010) Nevertheless, these people with shaky credit and possible history of past defaults were now new home owners, living the American dream. Unbeknown to them it was to be short lived because in 2006 the Fed raised interest rates back close to 6%…

By July 2008, when Australia was on the brink of the global financial crisis the Australian dollar again rose $0.96 US which showed that economic activity was booming, however by October/ November rates had dropped to $0.65 US. This was caused by a credit crunch, when a loss of confidence by US investors in the value of sub-prime mortgages caused a liquidity crisis. This then worsened as stock markets around the globe crashed, consumer confidence also declined…

1997 Asian Financial crisis is the structural weaknesses and inadequate monetary policy by Asian governments. This paper will discuss three important central bank institutional features - central bank independence, central bank transparency and inflation targeting – and examine whether these features changed after the financial crisis and their impact in terms of helping Asian economies transform into healthier situations post-crisis. 4.1 Central Bank Independence Prior to the 1997 crisis,…

Question 1 The banks function as an intermediary between depositors and investors. It is depositor’s main aim to safeguard their saving while investors in the other hand need some financial assistance in order to fulfil their economic and financial objectives. Thus, it is a crucial responsible for them to fulfil the commitment towards few important goals to both clientele. Besides maximizing the profit to fulfil their obligation to the shareholder, banks also responsible to ensure soundness of…

forced upon companies during the Global Financial Crisis (GFC) from 2007-2009. It explores how IBMs response to the GFC was mainly focused around the concept of ‘Smarter Planet’, which was the use of Smart Technology as the company’s effort preserve costs and improve profit levels to maintain innovativeness and competitiveness within the market. Furthermore, a discussion into the use of technology both pre and post GFC…

Economic Downturn in 2007/08 Economic stability is a critical factor in a country because it is one of the key drivers towards development. Many countries strive to stabilize their economies through proper leadership and having peace in their countries. War is one of the things that may affect the economy of a country significantly and may even result to depressions that are of great extents. The great depression and the World War II are considered to represent tough times that the Americans…

There are lots of reports, attention, and even movies record this famous financial issue. In the movie “Margin Call”, John Tuld (very similar with Richard Fuld, who was the CEO of the Lehman Brother) said, the toxic aspect of its asset make it dangerous enough to death, and will be transferred easy relatively. 2000 is the 150 anniversary of Lehman Brother. The World Trade Center Office of Lehman Brother destroyed in 2001 “9.11”, and move to Manhattan 2002. During 2002, Lehman Brothers build it…

is one of the most important tourism regions in the world and it generates more than 4% of the European Union GDP. However, the tourism industry has faced numerous challenges, from environmental disasters to globalisation, and specifically the financial crisis that started from 2008 has provoked severe damages to this economic field, causing Europe’s market shares to decline during this period due to the vulnerability of this industry to economic volatility. This leads to immediate effects, such…

loss of exports via linkages have had an important role in internationalizing the Great Depression, as well as the Crisis of 2007. In fact, during the first year of both downfalls the rate of real exports fell by approximately 20% and the global output reduced on average by 4%. Despite the similarities between these two crises, the causes for them were not the same. During the 2007 crisis uncertainty and changes in the structure of trade seem to be the main reasons in the decline of trade,…

gauges a publicly traded manufacturing company's likelihood of bankruptcy. The Altman Z-score is based on five financial ratios that can be calculated from data found on a company's annual report. It uses profitability, leverage, liquidity, solvency and activity to predict whether a company has a high degree of probability of being insolvent. Altman Z-Scores and the Financial Crisis In 2007, the credit ratings of specific asset-related securities had been rated higher than they should have been.…